The Plot Twist: Some analysts thought that Las Vegas Sands was one of the better-positioned Macau operators because it had more exposure to the mass-market gamblers, which had been holding up better than the VIP segment. However, the downbeat results left many analysts still wary, as Las Vegas Sands recorded 6% year-over-year mass-market growth, below the 9% market average. Nomura Instinet’s Harry Curtis reiterated a Neutral rating on the stock but lowered his estimates to reflect the slower-than-market growth, and Telsey Advisory Group’s Brad McGill reiterated a Market Perform rating, citing “continued uncertainty in China and the outlook for the concession renewals in Macau.”

Nonetheless, some analysts are still upbeat about the company’s prospects, pointing to a brighter outlook for its domestic operations: CFRA’s Tuna Amobi reiterated a Buy rating and $60 price target on the stock, calling Las Vegas convention business a bright spot. Elsewhere, Stifel’s Steven Wieczynski has a Buy rating and $72 price target on the shares, and highlighted the more than $1 billion Las Vegas Sands returned to shareholders in the quarter.

Moving Forward: Recent data points from China have done little to ease investor fears about that country’s macroeconomic position as its trade war with the U.S. drags on. So while expectations for Macau may be lowered, Las Vegas Sands’ downbeat results may demonstrate that we haven’t reached a bottom quite yet.

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